By Shilpa Mahna Bhatnagar, Founder- haeywa
There is no denying the fact that ever since digitalisation kicked in, technology has become an indispensable part of personal as well as professional lives. In this context, the internet revolution has given rise to a slew of inventions that are growing in scale and becoming increasingly difficult to ignore. Therefore, in order to remain competitive in the market, businesses throughout the industry, including banking and finance, have recognized the significance of cutting-edge technology such as artificial intelligence, and big data analytics, among others, and have incorporated it into their operations. However, overcoming the barrier of their legacy of style and structure of doing things, the adoption of technological breakthrough is not as simple as it appears, and organisations stay hesitant to fully embrace new tools and software. This technical inertia or reluctance to change has stifled the growth of many enterprises, prevented them from reaching their full potential, and posed challenges for traditional Indian businesses.
Challenges Among Traditional Business
Traditional businesses in India are mostly family-owned, and the decision-making process is centralised. They rely on conventional methods of doing business and are hesitant to incorporate new technologies due to several reasons. This, in turn, led firms to face challenges due to the rapidly changing business environment. So let’s delve into the challenges that traditional businesses face in India.
Paper-based Process: One of the biggest challenges traditional organisations face is switching from paper-based accounting processes to digital tools, as they struggle to adopt the new-age technology. Despite the numerous benefits of this technology, including as better accuracy, efficiency, accessibility, and real-time tracking of spending and cash flow, many firms are hesitant to implement it.
Cost: It is evident that cost plays a significant impact throughout the adoption of technological innovation. Nevertheless, many conventional firms are content with the way things have always been conducted and the notion of converting to a new system can be intimidating. Additionally, the initial expense of adopting new technology can be a large investment, which many organisations may not be willing to make.
Lack of Knowledge and Trust: The elder generation of business owners struggles to accept new technology due to a lack of technical knowledge and experience. As conventional businesses prefer paper cash over digital cash and documents. Furthermore, there is a widespread belief that digital instruments are less safe and more vulnerable to hacking or data breaches. As a result, adopting technological innovation becomes the biggest challenge for the business owner to adapt and thrive in the market.
Technological Advancement: Paving the Way for the Future
There is no doubt about the fact that technology adoption has become a critical necessity for organisations across all industries, including banking and finance. As a result, to overcome the challenge, numerous organisations have implemented cutting-edge technology and trends. In this context, the banking industry has developed an imprest management system to handle their petty cash, which sometimes goes unreported, compromising the precision of corporate operations.
In the present era, the emergence of technology has revolutionized financial management and driving organisations to acquire improvements to handle their data, records, and so on. Additionally, when combined with technology, imprest management has the potential to completely change the ball game altogether. As it will carry out business activities within the limits of different algorithms, planned options, sub-processes, and repeated instructions, which will ensure correct outcomes by minimizing the potential for mistakes.
In a nutshell, technological inertia has become a significant threat for traditional businesses in India. However, with the correct education, support, and mindset, businesses can overcome the obstacles and embrace new technologies that will ultimately help them grow and succeed in today’s digital age. As a result, in order to meet the difficulties, conventional enterprises must comprehend the benefits of technological innovation and accept them to pave the way for future.
